Trade Pact, Rs 5,000 Cr Credit Line, Defence Ties And More: PM Modi, Maldivian President Muizzu Elevate Bilateral Ties

On his State Visit to Maldives, PM Narendra Modi held wide ranging talks with President Mohamed Muizzu and the two leaders discussed an array of bilateral issues, boosting the ties between the two nations. The Ministry of External Affairs said in a statement that the two leaders reviewed the entire spectrum of India-Maldives relations & reaffirmed their commitment to further strengthening the ties. The MEA said that discussions were held for cooperation in the fields of development partnership, capacity building, health, infrastructure, digital economy, aquaculture, climate change and renewable energy. 

“The two leaders called for closer collaboration to enhance peace, progress and prosperity of the Indian Ocean region,” said the MEA. Notably, PM Modi is the first foreign Head of State or Government to be invited by Maldives on a state visit during President Muizzu ’s term.

Issuing a joint statement with Muizzu, PM Modi said that to give a new flight to development partnership, India has decided to provide a line of credit of 565 million dollars, which is approximately five thousand crore rupees, for the Maldives. “This will be used for projects related to the development of infrastructure here, in line with the priorities of the people of the Maldives,” said PM Modi.

The leaders also took stock of the progress in the implementation of the India-Maldives Joint Vision for a ‘Comprehensive Economic and Maritime Security Partnership’ adopted in 2024. PM Narendra Modi said, “Last year in October, during the President’s visit to India, we shared a vision on extensive economic and maritime partnership. Now, this is becoming a reality. It is a result of that, that our relations are touching new heights.

Thanking India for the continuous support, President Muizzu said, “I am also pleased to announce the initiation of negotiations for a free trade agreement between India and Maldives. This landmark initiative marks a significant step forward in strengthening our economic partnership.”

PM Modi also said that India is the closest neighbor of the Maldives. “The Maldives holds an important place in both India’s ‘Neighbourhood First’ Policy and MAHASAGAR vision….India is also proud to be the most trusted friend of the Maldives. Be it a disaster or a pandemic, India has always stood by as the ‘First Responder’. Whether it is about providing essential commodities or managing the economy post-Covid, India has always worked together,” he said.

The Prime Minister also hailed the strenghtening of the defence ties. “Mutual cooperation in the field of defence and security is a testament to mutual trust. The Defence Ministry building, which is being inaugurated today, is a concrete structure of trust. It is a symbol of our strong partnership.”